IB Economics HL Trade Quantity and Value Calculations

IB Economics HL Trade Quantity and Value Calculations
IB Economics guide, first assessment 2022

Review IB Economics HL trade quantity and value calculations through import expenditure, export revenue and diagram-based price-times-quantity work.

How this is tested

  • calculate import expenditure by multiplying world price by the quantity imported
  • read import quantities from diagrams before comparing changes in expenditure

Question 2(d)

[Maximum number: 2]

Country X and Country Y are capable of producing both apples and bananas. Assume a two-country, two-product model.

Country Y has absolute advantage in the production of both apples and bananas, and comparative advantage in the production of bananas.

Calculate the change in expenditure on imported oranges as a result of the increase in demand.